Financial centers in Canada are growing in both size and reputation, as their counterparts in the United States lose ground following the government’s increased focus on protectionism.
Toronto appears as the seventh most important financial center in the world in the latest rankings from the Global Financial Centers Index (GFCI), showing a progression of three spots since placing tenth in the rankings six months ago.
All financial centers in the United States fell in the GFCI ratings. New York City saw a 24-point fall, with San Francisco, Boston, Chicago, and Washington seeing even larger drop offs.
“The industry in the USA is feeling a bit isolated at the moment,” says the report, adding that Canada is “a slightly bigger deal in the world of high finance than it used to be”.
Montreal ranked at 12th place, up from 14th in the last survey, while Vancouver stayed steady at 17th place.
The only Canadian loser in the index is Calgary, which dropped 22 spots to 71st from 49th in the previous survey.
The authors of the index, British think tank Z/Yen and the China Development Institute, say they took into account several factors, including business environment, human capital, infrastructure, financial sector development, and reputation.
London has been placed first on the index, despite the fact that Brexit is clouding the British business environment.
“There is an overall drop in confidence among the leading centers,” the report said, indirectly blaming Brexit and the protectionism trend in the US. “Protectionism and barriers to international trade concern many, especially in the US.”
Latin American financial centers have continued to struggle, with Sao Paulo, Rio de Janeiro, and Panama all falling significantly in the ranking. Caribbean countries had mixed fortunes, with the Cayman Islands and the British Virgin Islands falling, but Bermuda and the Bahamas rising slightly.